Market Overview

Pro: Tesla's Success Is Riding On This

Share:

Options expert Nic Chahine recently told Benzinga he was impressed that Tesla Motors Inc (NASDAQ: TSLA) held support amid a market sell-off last week. He did, however, voice concerns on issues regarding factory placement and implementation.

Tesla Held Amid Falling Oil

Chahine, in particular, dove into the relationship between oil and Tesla: “In theory cheaper oil should be bad news for Tesla.” The fact that Tesla shares held, he said, implies the market believes the company offers more than an alternative to gasoline-powered automobiles.

Related Link: Proof Apple Is Working On A Tesla-Killer?

There is excitement around the company's innovations, Chahine added.

Tesla’s Factory Situation Is A Concern

The expert notes that CEO Elon Musk chose Reno, Nevada as the location for Tesla’s lithium ion battery factory based on battery pack-completion time, rather than cost efficiency.

He warned: “If there is a problem with the factory, that could jeopardize the future of Tesla...because so much is riding on it.”

A Trading Idea

Chahine concluded with a trading idea: “Take a debit spread and guess the direction. Tesla looks like it is at a decent support and may be looking at a pop in the near future. However I haven't quite decided that yet.”

Tesla will report fourth quarter earnings after the markets close on Wednesday.

The full interview is below.

Latest Ratings for TSLA

DateFirmActionFromTo
Apr 2019DowngradesIn-LineUnderperform
Apr 2019Initiates Coverage OnNeutral
Apr 2019MaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Dennis DickAnalyst Color Previews Exclusives Analyst Ratings Tech Trading Ideas Interview

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TWTRMaintains48.0
FSLRReiterates75.0
DISMaintains168.0
AZPNUpgrades116.0
WWEMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Wedbush Reviews Investment Thesis on Waste Connections Following Q4

Keefe, Bruyette & Woods Struggles To Justify Valuation On Mercury General